Each year military pay increases to compensate for cost of living increases. The increases vary. In 2023, the increase for active duty military will be 4.6%. Though the actual societal cost of living increase is higher at around 7%.
Retirees also receive a cost of living increase to help individuals sustain their lifestyles despite inflation. Military retirees and those receiving disability pay receive a higher increase at 8.7%.
Cost of LivingOver the last 30 years, American families have experienced an increase in the costs of basic necessities resulting in reduced economic security. Even middle-income families worry about paying their bills. In particular, prescription drugs, childcare, and education have risen substantially, and even faster than incomes.
The changes impact families differently. Different families spend their resources differently. Those with young children often spend more on housing and childcare than those without, and elderly families often spend more on home health care and prescription drugs. Public benefits can play a role in helping families afford basic needs through government programs, such as Medicare and Medicaid for medical care, the Child Tax Credit and subsidized school for childcare and academics, and food costs through the Supplemental Nutrition Assistance Program.
In employment, some organizations may incorporate an annual salary adjustment into employee pay. However, many companies give merit increases because most reward employees who are productive and contribute to the overall profitability of the business.
Social Security IncreasesSocial Security and Supplemental Security Income benefits will increase 8.7 percent in 2023. A social security retirement is not divisible as an asset in divorce, however social security income does count as income for support. It can not, however, be garnished for support arrears. The maximum amount of earnings subject to the Social Security tax will increase to $160,200.
Historical Increases
Increases vary and here is the pattern for the past ten years.
How can an attorney help with military divorce and family law? A Colorado Springs divorce and family law attorney can guide you through Colorado Springs military divorce and family law issues. This allows you to focus on moving forward to a better future rather than on spending your time trying to figure out the overly complex court system. Contact us at 719-344-5523 or complete our online form to set up a free thirty-minute informational consultation.